those are from steve wynn. we know there are a lot of businesses on a hiring streak, randi, but this is what the billionaire and real estate mogul in las vegas thinks about the obama administration. >> strong words. shannon travis, thank you very much. nice to see you. "cnn newsroom" continues with brooke baldwin. >> i like your choice of wardrobe, randi kaye. thanks. look, busy, busy tuesday here. you've been watching all day long, stories breaking everywhere. just a short time ago president obama appeared before reporters saying this, that a bipartisan group of senators has come up with a plan that could pave the way for a deal on america's credit limit. folks, this could be the first bit of good news in weeks as the deadline quickly, quickly approaches. two weeks to the day. we'll get to all that have in a moment here. let's start with this. rupert murdoch and his son were supposed to be the focus of a

british parliament hearing today in london but they were upstaged momentarily by an intruder who somehow managed to get very, very close to the murdochs, too close as you're about to see. watch. so no official word yet as to who exactly that guy in the plaid shirt was. we know he was shouting you greedy billionaire, but he pushed a plateful of shaving cream into rupert murdoch's face before he was grabbed, first by his wife, if you watch it, not in this shot but you can see she was wearing that bright pink jacket, and then by authorities. they did take a quick break. he then continued jacket off to answer questions before parliament's committee on media, culture and sports. so the members wanted to know this, how much did rupert murdoch and his top executives know about the phone hacking by reporters on his payroll, how closely he followed day-to-day operations. the newspaper closed because of

this whole thing. and how responsible he feels about this entire affair. >> do you accept that ultimately you are responsible for this whole fiasco? >> no. >> you are not responsible? >> the people that i trusted to run it and then maybe the people they trusted. >> are you familiar with the term willful blindness? >> would you care to elaborate? >> it is a term that came up in the enron scandal, willful blindness is a legal term. it states that if there is knowledge that you could have had and should have had but chose not to have, you are still responsible. >> mr. sanders, do you have a question? i don't know what you'd like me to say. >> were you aware -- >> i'm not aware of that. i'm not aware of that particular phrase. >> now you are familiar because i've explained it to you. >> thank you.

>> we were not ever guilty of that. >> thank you. >> we have been very clear that serious allegations of wrongdoing have been leveled about "the news of the world," and we believed that "the news of the world," the actions of some reporters and people some years ago have fundamentally tarnished the trust "the news of the world" had with its readers and this is a matter of huge and sincere regret, mine, my father's, and the company's. >> let's go straight to london for more. richard, i know you watched the murdochs on the hot seat just like i did, so many of our viewers did through the day here. rupert murdoch and his son said several times, in fact the lead line to this opening statement which mr. murdoch actually read to the end, talking about regrets, they're sorry, that they knew nothing about hacking or any elicit activities within

their companies. in general how do you think they did? >> reporter: i think they get full marks for answering all of the questions and that certainly also goes for rebekah brooks who has been arrested and possibly faces proceedings. so the fact that almost never did they hide behind legalese on the advice of lawyers, there was none of that senate committee hearings where i plead the fifth. nothing like that at all. they answered the questions again and again and again. however, having said that, they -- the committee never really got to the core question of why upper management either didn't know or should have known about what was happening. and on the very sensitive question of 9/11 and the hacking into potentially -- allegedly, victims of 9/11, murdoch said it hadn't happened. james murdoch was far more i don't know about this yet. we're still investigating.

>> richard, i'm just curious. was there any time where they raise their right hand and pledge that they will be telling the truth? were they formally sworn in or was this an informal q&a? >> reporter: no, no, no. you don't need any of that i swears, all that sort of stuff. this is a parliamentary committee and by definition you tell the truth. it's an offense to mislead parliament. there's a special offense of contempt of parliament so you don't need all of that sort of stuff. in fact, rebekah brooks and the committee -- she is accused of having misled parliament at previous hearings that she has appeared before but, no, they basically gave the evidence. >> i can hear a reporter behind you. i can only imagine the presence of the media covering this whole story. let me ask you this. were mps, the members of parliament, really expecting anything other than, you know, the sincerest apology and the words of being humbled from the murdochs? if the murdochs had incripple

mated themselves in any which way, was parliament prepared to act, to perhaps bring charges forth? >> reporter: you have to remember that these lawmakers that were doing the questioning today, they didn't just come to this yesterday or last week. tom watson, for example, has been asking questions on this subject for the last two years at least so they know the subject. they knew what they were going for. now some will claim that they didn't forensically take them apart, they didn't destroy their evidence. that wasn't the job today. today is all about setting a record, getting the answers, and remember one very important thing, brooke, we have five other investigations about to take place. you've got the police looking into it. you've got the independent police commission looking into it. you've got a judicial inquiry, a full-scale judicial inquiry. a long way to go.

>> what are you hearing as far as company leadership? is rupert murdoch done or will we not know that for quite some time? >> reporter: i'm sorry. could you just repeat that question? >> sure. i know it's loud. with these different investigations that are ongoing as you pointed out from what you're hearing is rupert murdoch done or will we not find that out for quite some time? he laughs. why do you laugh, richard? >> reporter: the laugh -- well, the laugh is it's a really foolish person that would say rupert murdoch is down-and-out. he may have been 80 and some of the pauses that he gave today you probably had time to drive a double decker bus through, they took so long. however -- however, when he did speak, some of those comments, they just went straight to the heart of it.

when asked about -- his final statement, it is wrong to phone hack. it is wrong to pay the police. no excuses. when it mattered rupert murdoch came out with a strong, hard answer. now, of course in those other moments you must not forget, brooke, when somebody decided to throw a plate -- a plastic plate of shaving foam in his face which caused a certain amount of commotion. but rupert murdoch just carried on. he reminded us he had 200 papers. he's been in the business 57 years. it is a foolish person that actually thinks murdoch's down-and-out. >> yeah, he mentioned today at age 80 works 10 to 12 hours a day. we'll talk about this man behind the empire in just a moment. richard quest, i appreciate it. thank you so much. what a day for you all in london. we've been watching rupert murdoch face very tough questions but the news corp. stock seems to be faring pretty

well today. looking at the numbers which may be surprising to some given the coverage today, what does this mean for news corp.? >> reporter: well, we watched news corp. shareholders do pretty well today. shares are up almost 7%. that's after the broader markets rallied as well. i guess shareholders see it as murdoch did okay today in front of parliament. it hasn't been an easy ride for news corp. heading into today's session news corp. shares tumbled 17% since july 5th so that works out to about $8 billion in lost market value. the impact on the stock actually has been limited because newspapers only represent a very, very small part of the company's revenue and profits. news corp. owns everything fox, the local tv stations that aired "the simpsons" and "american idol." 20th century fox movie studio. they have been anxious to hold a

stake in the company when the reputation has been dragged through the mud. it looks like the murdochs are doing their best to clep up the mess today. reviews have been mixed. once again it looks like investors are buying it at least for today. one analyst called it a really great buying opportunity because much of the selling we've seen has been emotional. it looks like everybody is buying back the stock today, brooke. >> perhaps the numbers are due to the fact we heard a nice phrase coming out of the president's mouth. we'll talk about that here in just a moment. alison, thank you very much. rupert murdoch facing a protester hell bent on pieing him in the face. a woman nearly tackles him with the pie. that woman is murdoch's wife, wendi. we'll tell you more. two weeks, folks. 14 days. it's all the time congress has to reach a deal on raising the debt ceiling. can a key group of senators help

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personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. it is the moment of the day everyone is talking about it. you're tweeting me about it. have you seen this? after being grilled by british lawmakers for more than two and a half hours 80-year-old rupert murdoch was attacked by a pie. take a look. a man at this hearing today, keep in mind this room just about 50 people are in there. bottom left-hand corner of your screen there's a gal in a pink jacket. that is his wife. let me tell you about her. she doesn't waste any time or effort going after the attacker, so who is she? that is his wife there we go.

the lady in pink. this is wendi, his wife. and it got us wondering exactly who is this woman who literally stood up for her man? here is what we know. she married rupert murdoch june 25th, 1999. she is murdoch's third wife. the couple has two young children and "the wall street journal" profiled wendi back in 2000. and in that article we learned she grew up in china and she came to the u.s. in 1988 to study. she went on to receive an mba from yale in 199. shortly after that she landed an internship at star tv in hong kong. that turned into a full-time job and eventually led to her relationship with murdoch. now to potentially big, big news in washington. debt talks, big news and a very significant step forward today, says president obama, just a short time ago. the president announced the so-called senate gang of six made of members from both parties has floated this new proposal that he, the president, can work with. the bipartisan group had thrown

in the towel, ditched an earlier effort to find a debt reduction package okay to both parties and now at this late date 14 days until a potential government default. they're back with a plan that the president says includes deep spending cuts and, yes, also includes tax increases. here's the president. >> here's where we stand. we have a democratic president, an administration that is prepared to sign a tough package that includes both spending cuts, modifications to social security, medicaid, and medicare that would strengthen those systems and allow them to move forward and would include a revenue component. we now have a bipartisan group of senators who agree with that balanced approach. and we have the american people who agree with that balanced approach. my hope and what i will be urging speaker boehner, nancy

pelosi as well as leader reid and mitch mcconnell is that they tomorrow are prepared to start talking turkey. >> talking turkey, getting series. a very significant step. but as the president also said, still a long way to go and a short time to do it before the government runs out of ways to pay all of its bills. stand by. i'll take you live to the white house for more on that. i want to remind you, let's peek in here to pictures from the house and let mae tell you what's happening right now. as we speak the house of representatives has just begun to debate this ten-year republican budget proposal. so in addition to deep spending cuts it calls for a balanced-budget amendment to the u.s. constitution. look, the president said today, forget it. won't sign it. we're going to watch the debate for you nonetheless. now it to the white house's promise to dan lothian. the president said it was around 1:30 eastern time, the top of

the briefing that he had received this plan, just received this plan actually, put forth by the senate gang of six or gang of seven now. i think he added an extra senator. he said he was reading the fine print. have we learned any more, dan, about this it particular plan this group is proposing? >> reporter: well, a couple of things. first of all, what this plan lays out are these cuts between $3.6 trillion to $3.7 trillion over it ten years, a trillion of those cuts would come in the form of closing those tax loopholes. in adid decision 0 to that one other provision of the plan would call for a repeal of long-term health care program. as you pointed out, the president saying in a broad sense this is something that seems very pos it tiff but he still is rig to figure out all of the details of this plan, this proposal before signing on to it completely, brooke. >> the president said after this vote, we just mentioned it's nearing in the house. they're debating it right now. he's going to pick up and call house speaker john boehner and

try to arrange a meeting back at the white house to, in the president's words, talk turkey. >> reporter: that's right. >> do we know anything about the time frame, dan, with regard to the next big meeting? >> reporter: we don't. we can surmise there will be some type of meeting tomorrow but nothing yet on the schedule. we tried to get some answers to it that from white house officials and they said they had nothing for us at this point. i should point out, though, that a lot of times there are these meetings that will happen either at the highest levels or on the staff level that take place sort of off the schedule and we find out about them after the fact. certainly the president talked about wanting to get together for at least a meeting if not more meetings, but so far we don't know exactly when that will be. perhaps tomorrow or what time that will be. >> okay. so that's still up in the air. what we have covered quite extensively is the republicans refusal to begin to entertain some sort of tax increase. we have to talk about the left

here. the president is now talking about changes to social security, changes to medicare, dramatically reducing the size of the government. so how confident is the white house that he can get nancy pelosi and his house of democrats to go along with that? >> reporter: you bring up such a good point because a lot of times you look at this fight as being between democrats and republicans and the demands that republicans have but even the president himself has pointed out how he has convincing to do within his own party. and while he's embracing this proposal at least as he sees in a broad sense he still understands, you heard him say that today, there needs to be more support for this beyond just the gang of six or the seven that there has to be broad appeal in order for something like this to pass. so one of the things i was asking jay carney it at the briefing today was whether or not they had any plans whatsoever to reach out to some of these democrats or republicans to try to get them

to come onboard once the president formally embrace this is plan if, in fact, he does. he said, look, that's essentially putting the cart in front of the horse, that they haven't gotten there yet. certainly the white house will have to mount some kind of effort to woo over the democrats the who have deep concerns about cuts on these entitlement programs. >> absolutely. the hour is nearing to talk turkey, i guess the time and date still tba. >> reporter: and it's not even thanksgiving. >> dan lothian at the white house, i appreciate it so much. while members of the british parliament grilled rupert murdoch another hacking investigation under way right here at home. the fbi today raiding homes, confiscating computers. folks, this is a huge deal. we'll tell you why coming up. so. i think you'll find it's the vegetables. deliciously rich. flavorful! [ female announcer ] together at last. introducing new stouffer's farmers' harvest with sides of lightly sauteed farm-picked vegetables. find more ways to get to the table at letsfixdinner.com. handle more than 165 billion letters and packages a year.

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we've been talking about the british hacking investigation. a major hacking investigation under way right here in the united states. possible links to the notorious hacking group called anonymous. let's go to brian todd who has been digging on this one today from washington. brian, i know this is a big deal. tell me why. >> reporter: well, brooke, the group anonymous is the group that is being targeted here and they are notorious in this country for several high-profile incidents over the past year linked to hacking of the websites of the cia, of sony, of fox news, also they were said to have hacked into the and disrupted websites of visa, mastercard and pay pal back in december as a protest for those groups ending their affiliation with wikileaks. anonymous has been active over the past year. these takedowns are a major operation. as you mentioned at least 14 people have been arrested across the country.

we're told the arrests took place in florida, california and new jersey but also several certificate warrants were executed this morning in the new york city area. maybe more arrests can be expected. again, this group anonymous has been active over the past year. they are also linked to possibly some members of this notorious group that has also disrupted some major sites including the u.s. senate. they are trying to figure out who is who. the it takes a while to have people turn on each other in these organizations but they hope to have more arrests in the days and weeks ahead. >> and dupe quickly, according to the folks you've been talking to, how many arrests we're talking? >> reporter: well, they have 14 right now. they expect probably at least a few more in the days and weeks ahead, but they're going to have to interrogate the suspects they have in custody right now and cyber experts will tell you that these people who are in custody very often give evidence for other people. so it does take a while to play out. >> indeed, indeed. sometimes they do talk. brian todd, thank you so much.

cnn and hln are the very first news networks to stream 24 hour news online and on mobile. of course it stopped right when i try to show live tv on my phone because someone treated me and i appreciate your tweets. even if if you're not sitting in front of a tv you can watch me and our favorites, it's loading. stand by. i promise we'll get it up for you. here we go. take a look. it's brian todd from a couple seconds ago because it's a little bit on delay. to cnn.com/video. now this. >> the crime scene was certainly a merciless killing. it was brutal. >> a florida teenager accused of the unthinkable. police say a 17-year-old beat his parents to death with a hammer. but it's what he it did afterwards that shocks that community the most. the toys ? sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys !

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another if fell asleep. the faa says blood alcohol level tested above the allowed legal limit during a random test on july 5th. family members say the controller was given a choice to resign or go to rehab and he chose rehab. since no accidents happened on his watch our affiliate says he could eventually return to his job. pill fill eagles quarterback michael vick was on capitol hill today to voice his support for legislation cracking down on dogfighting operations. the bill would make it a crime to be a spectator and to bring children to dogfighting events. remember vick served 19 months in prison after pleading guilty to involvement in an illegal interstate dogfighting ring back in 2007. today vick reflected on why he chose to support this particular bill. >> i'm doing it for myself. i'm doing it for the humane society. i'm doing it for the animals. i'm doing it for all the people out there i involved because there's so much more you can be doing with your time and, you know, there are so many animals

that can be raised in better households. >> michael vick today. now to a disturbing story out of florida. police say a teenager beat his parents to death with a hammer. he then hid the bodies and afterwards hosted a house party. according to sheriff's officials the teen posted an invitation on facebook to a party at his parents' home. he allegedly killed his parents with a 22-ounce hammer, dragged their bodies to a bedroom. the party went on as planned. 40 to 60 people showed up it at the house to party. police were called in for a welfare check the next morning and that is when they discovered the bodies all covered up. >> books, files, towels, anything that he could find inside the home to cover the body. >> the crime scene was certainly a merciless killing. it was brutal. >> 17-year-old tyler hadley is in custody. he was arraigned today. he is charged with two counts of second-degree murder and authorities say he will be tried

as an adult. and take a look at this. take a look at this. in case were you wondering this is what a million dollars looks like in cash and this is what was cop fnfiscated during a sto. a police dog named daisy is credited with sniffing out the cash that contained cocaine residue. police are trying to trace the money back to the source. and the top dogs in news corp. say they had no idea what their own reporters were doing, so is this a case of executive i go mourns or straight up lying and who is going to take the fall here is this up next, we're going to talk about the legal implications of the murder dock hacking scandal. ne ♪ ♪ my only sunshine ♪ you makes me happy ♪ when skies are grey ♪ you'll never know, dear ♪ how much i love you

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rupert murdoch, the boss of 52,000 people all around the world says someone else is responsible for the phone hacking scandal that has caused this huge uproar in the united

kingdom. a british parliament committee fired question after question after rupert murdoch, his son james, a top executive within his company and murdoch's former head of print media in the uk. i want to talk to senior legal analyst jeff toobin here. before i talk to you, we have a scroll of all these different companies, publishing houses, websites, television, film, all these different companies under the news corp. umbrella to give people an idea how many and how vast this company is. now, jeffrey, they denied today, distanced today, tried dodging, the shaving cream pie. what were your impressions of today's testimony? >> reporter: well, ignorance was bliss. i guess that was the theme of the day. in that rue pepert murdoch, his

james, and rebekah brooks said they had no idea that all this hacking was going on by their employees or contractors, people working for them. they simply did not know. they paid off various lawsuits where people had been hacked but they said those were isolated incidents. they didn't know the actual individuals who did the hacking and the members of parliament doing the questioning were skeptical but they didn't have the proof to confront them with. so i thought it was kind of a draw. >> let's talk about the room itself. you've been in plenty of courtrooms. this room today seated like 50 people and all out of nowhere it appears, two and a half hours into this thing, this guy jumps, rushes the room and has this shaving cream pie -- i mean, where was security? >> it was really shocking and really appalling. it's one thing to try to

maintain security in a room of 1,000 people, a room of -- a ballpark of 50% people. this was 50 people. it's like a large classroom. you could have searched everyone, you should have searched everyone. this was the biggest hearing in parliament in a generation. and some clown walks in there with a bag and apparently like a shaving cream pie in it. people sometimes make jokes about pies in the face. this is serious stuff that could have been a brick. it could have been a knife. this was an appalling lapse of security, and everyone is very fortunate that only rupert murdoch's jacket was injured. this could have been a really serious thing. and i think security at parliament was a disgrace and those people ought to be ashamed of themselves. >> he did appear to brush it off his shoulder, take off his jacket and continued on. going into this sort of hearing,

this line of questioning, how do you think rupert murdoch and his son james were advised, prepped for this? this isn't something they endured before. >> reporter: sitting behind them you could see joel kleine who used to be at the new york city school chancellor, who has now become very much a top aide there, also a very distinguished lawyer. i think the answers -- the advice you always give to clients in this situation is tell the truth but don't speculate. don't volunteer anything and they followed that advice as far as i could tell. they did not acknowledge anything that could be considered wrongdoing unless there was a specific document or a specific fact that they were confronted with. they were very contrite. rue pe rupert murdoch apologized. they didn't acknowledge they knew of the wrongdoing.

one of the most interesting was towards the end rupert murdoch was asked, you're the boss here. what about your accountability? do you feel responsible? and in his very straightforward us a tr australian way he said, nope, i'm not responsible. i was let down by the people beneath me. now maybe that's not how leadership is supposed to work but, you know, this is his candy store. they own about 40% of the company and he sort of does what he wants. >> i was reading criticism of his answers today. quickly as i was trying to read up on this foreign practices -- corrupt practices act, despite, it's an american company headquartered not too far from you in manhattan. accountable to u.s. laws as well. just explain to me how they are accountable here to laws in the u.s. under the foreign corrupt practices act. >> reporter: this is a law that was set up for the problem american companies especially in the 1970s were paying bribes to

foreign governments, foreign officials, individuals in other countries in order to get business like go to country "x," pay the prince $10 million, and that company will buy. they passed this law to stop those kinds of bribes. i don't think this law really applies to anything that went on here with news corp. i don't think news corp. has any serious criminal liability to worry about. i think they have to worry about whether they have the respect of the world community, whether the independent directors are going to be upset enough to rebel against the murdoch family, but i don't think in the american legal system at least anybody has anything to worry about in terms of prosecution at least based on the evidence i've seen so far. >> okay. interesting and worth asking you about. jeff it toobin, always a pleasure. up next, newborn babies being killed and thrown into dumps like garbage. some of them hung. feigned out why that's the horrific reality in pakistan

now.

i want you to take a look at the video i'm about to play for you carefully. what you're about to see, here it is, wrapped in cloth are dead baby girls in a morgue. babies just like these are being found in garbage dumps all around pakistan, thrown away by families who just don't want them just because they're girls. and girls, by the way, are considered a financial burden on families there. i want you to watch this report.

>> reporter: it's in garbage piles like this where according to an aid group pakistan's worst tragedy is unfolding. the killing and dumping of newborn baby girls. >> sometimes they kill, they hang -- >> reporter: they hang them? >> they hang them and sometimes they're killed by knife and sometimes we find dead bodies that have been burned. >> reporter: a manager at pakistan's largest privately run social service and relief agency. at call centers like this, aid workers receive reports of more than 1,200 newborns and infants killed or left to die in pakistan last year, up 200 from 2009. the tiny corpses that are found end up in this morgue here. these five were found within the past few days, all of them double play pd around karachi. it's hard to believe that wrapped inside these sheets are

newborns that never had a chance. and this is an awful detail but sometimes these corpses are mutilated by animals before they're ever found. many of the victims are declared by families as illegitimate in a culture that condemns children born outside of marriage. nine out of ten are baby girls considered too costly to keep in a country where women are often not allowed to work. >> why killing these innocent babies? >> reporter: activists blame pakistan's crippling poverty and a government that for decades has failed to educate the masses and generate jobs. what's the solution? >> the solution is to increase and also to eliminate poverty. >> reporter: the government claims it's improving education but 55 million pakistanis remain illiterate and the government is billions of dollars in debt

while entanglning nld a costly fight against militant groups. the killing of newborn children gets little attention. >> we see all this sorrow, what's happening in this country. >> reporter: until things improve the foundation says it will keep these cradles in front of its offices where families can drop off unwanted newborns. the foundation cares for them, puts them up for adoption, no questions asked. >> please don't kill your innocent baby. thank you. if you think the hacking scandal does not reach you, consider this. there have been more cell phone hacks in the past 30 days than in all of 2010. did you know that? coming up, why mobile devices are targets. can i have some ice cream, please ?

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time now for the help desk where we get answers for your fx questions. the executive editor of cbs money watch.com and the president of optimum capital management, thank you for being here. first question comes from mountain view, california. they write, i have a couple of 401(k) accounts from previous employers i haven't paid attention to over the last few years. would consolidating these into a roll over i.r.a. make sense? >> first of all, this is probably great news because people who did pay attention to their 401(k) freaked out and a lot of them made bad decisions, sold stocks at the bottom and so

forth so you may be pleasantly surprised when he opens these statements finally. generally i recommend rolling over into an i.r.a. the one down side is the 401(k) you have a little bit more protection from creditors so if there's something dangerous on the horizon, leave it in the 401(k). otherwise roll it over. i'm a big advocate of index funds as ryan was saying, diversify. so maybe, depend iing on the ag 60% in foreign and domestic stocks, 40% in bonds, leave it alone. you'll be in great shape for retirement. >> don't get too over involved. let the market work itself out. rich writes, my mother's in an assi assisted living facility. i want her money to be protected and generate income. my financial adviser suggested moving some of her investments into a preferred stock. are these right for us? what do you think? is it risky at that age? >> the ideal is some. stocks were getting 10% return. and in it bonds maybe about 6%.

with more return you're going to have additional risk. they have additional advantage over common stocks in terms of liquidation benefits but bonds have advantages over preferred stock in that as well. >> safety. >> exactly. you'll have a little bit of fluctuation >> with bronds, i mean look, i'm a huge advocate of municipal bonds. get an adviser who can navigate the marks. more defaults than normal, but not as much that would cause me a lot of concern, you can get bonds that will give you good conservation of capital and security as well. >> you don't just have to look at stocks to make decent money. >> send us an e-mail anytime to cnn help desk. >> thank you very much. coming up in one minute, news corp. is not the only hacking scandal coming to light here. hackers are targeting cell phones or cracking into users

personal information.

>> okay, it toub the word of the day -- hacking. rupert murdoch and his son say they're sorry for this, but they're not taking the blame. here in the u.s., the fbi is arresting people tied to the hacktivist group called anonymous. let's go to dan simon with details. dan, what are we talking about here? malware, what is that? well, first of a you would, let me just state here the idea or

notion that somebody could get into your cell phone, get your personal contact information, maybe steal money from you, the idea is over, it's now happening. the hackers have realized that these phones that we all carry, they're just personal computers. our personal information is in here and that's why we're vulnerable. we have seen a tremendous increase in hackers injecting malware into applications. let me clear here, the most vulnerable application is the android platform. that's where the hackers have turned their focus. one of the most alarming trends we've seen over the past few months is hackers taking what appears to be a normal application from a website or from a store, they take it and then they inject it with malware and then upload it back to the store. so unsuspecting users down load what they think is a safe application. and what many of these applications do is they take control of our text messaging. they mind send out a premium text message that costs you $10,

you have no idea that this is taking place. you would have to look at your cell phone bill to realize that you were a victim. most people don't know we believe, at least according to the experts that hundred of thousands of users have been targeted this way. lookout security is an industry leader when it comes to this kind of hacking. take a look. >> people are realizing their phones are computers and the data on them have become digital currency. so voicemail is one thing. think about your location, your banking information, work info. corporate information. that all is incredibly ackers and hackers are new turning their attention to mobile devices for that reason. >> so lookout is just one company that that has built a business is in trying to get users to get that bad stuff off their phone. number one, look at the reviews. other people have done basically

the homework for you. see how many down loads an application has gotten. another thing you can do, if you're going to get a banking application, if you bank with bank of america, make sure the app is from bank of america, just common sense measures. the bottom line here is that this is mapping. most of them are in china or eastern europe. following the money currency is difficult. the internet itself is basically an anonymous place. >> it's an anonymous place, it's global. think before you download. dan simon, thank you. i'm about to show you a sight you never want to see when you're behind a wheel and you're up to your wheel wells in water. can you imagine this is what you see out the window? a flash flood steam sooemed to

come out of nowhere. no reports of injuries. that guy was ability to climb out of that mucky mess. talk to me about this heat wave. also we're seeing the pictures of the dust cloud, crazy pictures. >> big thunderstorm in arizona. although we had one -- they're called haboob. it's an arabic term because most of these sand storms happen in the middle east. but we had one a coup of weeks ago, a big one. this was a smaller one, one of our ireporters said the last one was like being malled by a bear. this was coming home to 100 adorable puppies. >> being facetious? not anything cute and fuzzy about this. this looks like dust in your dog's ears and everywhere else. it just looks like everything in your air conditioners and all of that.

but that's the the dust storm. >> part of the reason why the pittsburgh thunderstorm you saw with all that rain was so bad and so deep is because the warmer air can hold more water. so like the amazon, hot muggy air can hold more water. and new york city by the end of the forecast may approach 100 heat index. the heat does move to the east and look at this. 108 in philly and 108 in d.c. it moves to a more populated area where more people can be affected, especially on the weekend, too. make sure all those things are

working in your cars. you don't want to drive out there and get broken down in 112 degrees outside. congress has just two weeks to reach a deal on the debt ceiling. if there's no deal, the u.s. could default. i'm going to be talking to a republican senator, warren hatch. what are the republicans willing to do to compromise? be right back. (screams) when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing.

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the kwlok is sticking, two weeks until the august 2 deadline when the nation would default. i want to welcome senator orrin hatch, republican from utah to be with me today. he's until the midst of a raging deba debate. the federal government now, 14 days away. the gang of six bipartisan has resurrected himself. sent a debt reduction package you can work with. it's time to talk turkey and it could beoows t >> well, i don't know. the devil is in the details. we have a rough draft or an outline of what they would like

to do. where is the president's idea on this. he interested he's quite interested in this. >> the gang of six, bipartisan. you have folks from both sides of the aisle trying to hammer this thing out. stay with me here. conservative columnist david brooks, in an article he titled "the road not taken" he says republicans will come to regret this missed opportunity. he goes on, fortunately there are still practical conservatives in the gop who believe in results, who believe in intelligent compromise. so senator hatch, that sounds like you, right? you have a reputation of intelligent compromise. at this moment is your republican party able to

compromise because conservative david brooks is here from the new york times is kind of wondering that himself. >> well, we'll have to see. our party doesn't want to raise taxes because we think we're taxed enough. we think taxes at this time -- we agree with what the president said last december, you don't raise taxes during a bad recession like this oer a bad economic time like this. and i agree with that particular statement. but ever since, all he seems to want to do is raise taxes. well, the way the gang of six tries to get around this is by doing away with what are called tax expenditures. that's not as easy as you think. tax expenditures are things like charitable deductions, things like home interest and mortgage -- home mortgage interest payments. 401(k) plans. health care given to you by your employer. these are not little things that have -- they were enacted by the congress because they were needs

that were necessary in our society. but i'm open to really looking at this. i want to compliment the gang of six because they met for months and months now. basically all they have, they're coming to the finance committee, the devil is in the details and we're going to have to look at it and see what we can do. by the way, the president's $4 trillion and hopes for the cuts, we learned back in 1990 when we agreed to tax increases that occurred immediately. and then all of the so-called sprending reductions were to occur over time, none of them came about. >> well, i do want to talk a bit about raising taxes and the clinton administration and sort of what happened. i do want to go there in a moment with the impending deadline. we're staring at a potential government default. and maybe that's business as usual here, i.e. compromise, not beginning to look -- is it not beginning to look a little more appealing by comparison? a lot of folks are saying the current, you know, my way or the highway, i have to have it all

climate in washington is really unworthy of the usa and makes us look like a banana republic. >> well, i think that is true. i don't think it should be my way or the highway. when the president says $4 trillion, he doesn't outline what those are. i'm sure a lot comes from defense and a lot of programs that the republicans would have problems with. there are at least two baselines in their recommendation. they're making suggestions but it's going to be up to the finance committee and ways and means committee in the house, the finance committee in the senate to figure out how do you do all this and who actually is going to pay for this. >> i just know, and i've talked to a number of republicans on this show and they talk about raising taxes and how that's a job killer. but i do want to point out as i

did last week with senator brown, raising taxes did not kill jobs during the clinton administration. you know the history. bill clinton raised taxes. the economy created 23 million new jobs. an eight-year post war record. then george w. bush, he cut taxes, skree yated 3 million jobs. so those are real numbers. they come to us from the census bureau. >> that's an interpretation that i think is faulty because yeah, he raised taxes, but it was also the first republican congress in over 40 years and they actually forced a balanced budget on the president. and to his credit, he went along with it. now remember, he vetoed the welfare bill. had a lot to do with passing that bill. he vetoed it twice and then he finally agreed and passed it. and of course, that was a great incentive to the economy as well. people realize we're not just going to keep throwing money down the drain. it wasn't because he raised taxes that the economy took off. and in the case of -- >> he also did inherit a pretty

tough economy himself. >> he did. there's no question about that. and so did, you know -- so did president obama, he says. but the fact of the matter is that what obama doesn't acknowledge ever is that the democrats have taken over congress two years before he became president and they started the big spending programs again. in the bush administration, he did have problems because we got into the wars in iraq and afghanistan, and i think history will show that we were right to get into those. and we've had fairly good results so far from them though they've been very costly. >> i just always think it's important to tlook at history to then bring us to the president. as we come back here to 2011 and specifically your role, sir, in this. i know you're a staunch conservative. are you able to lead the way and compromise and the tea party are watching your every move, sir? >> well, it looks like this is

going to be thrown over into gsh if it passes, it will be thrown over to the finance committee and we'll see what we can do to do this without raise taxes but also by doing appropriate cuts that really should happen. and by reforming some of these programs so that they work better, cost less. that will be less government. >> a lot of americans would agree with you, but are you willing to compromise given that you're up for re-election and you have tea party republicans looking closely at you. >> they have to be worked out but they have to be made on a basis that makes sense and not raise taxes. we're taxed enough. gang of six, their approach to taxation is to lower the rate in three areas and lower the corporate taxes. i want to praise them for the good work they've done. the it's a bipartisan work, but the devil is in the details because all they've becausically given us is an outline. but that's important.

>> many of us will be looking to those details and potentially compromise on both sides. appreciate you coming on. >> thank you very much. i'll do my best. >> thank you. back to rupert murdoch. he and his son were supposed to be the focus of a hearing today in london. but they were upstaged by this intruder, did you see this? somehow managed to essentially rush the room, get very, very close to the murdochs. as you're about to see much too close. watch what happened. no official word yet as to who this man is, bottom left, plaid shirt. he yelled you greedy billionaire and pusheds a plateful of shaving cream before he was grabbed, first by murdoch's wife, wendy, the one in the pink jacket and then by police. rupert murdoch wasn't hurt. they took a quick break after this whole thing. he did continue, jacket off, to

answer questions. now here's what the members wanted to know today, how much did rupert murdoch and his top executives know about the phone hacks by reporters on his payroll. they also wanted to know how closely he followed the day to day operations at the newspaper that has now been closed because of this scandal, and finally, how responsible he feels about this whole thing. >> mr. murdoch, do you expect that ultimately you are responsible for this whole fias fiasco? >> no. >> you're not responsible? who are responsible? >> the people i trusted to run it and then maybe the people they trusted. >> are you familiar with the term willful blindness. >> mr. sanders, would you care to elaborate? >> it came up in the enron scandal. it's a legal term.

if there's knowledge you should have had or could have had but chose not to have, you're still responsible. >> mr. sanders, do you have a question? respectab respectfully, i just -- >> the question was, were you aware -- >> i'm not aware of that particular phrase. >> now you are aware of that particular term because now you've heard it. >> we were not ever guilty of that. >> thank you. >> we have been very clear that serious wrongdoing allegations have been levied at "news of the world." and we believe that the actions of some reporters and some people some years ago have fundamentally tarnished the trust "news of the world" had with its readers. and this is a matter of huge and sincere regret. my, my father's and the company's. >> just a couple of minutes ago, i talked to have cnn's richard quest who's been watching the

testimony play out today about the chances that rupert murdoch's testimony will hurt him professionally. you know what richard quest did? he chuckled. watch. >> it's a really foolish person who would say that rupert murdoch is down and out. some of the pauses he gave today, you probably had time to drive a double decker bus through, they took so long. however, when he did speak, some of those comments they just went straight to the heart of it. his final statement, it is wrong to phone hack, it is wrong to pay the police. no excuses. time and again, when it mattered, rupert murdoch actually came out with the strong, hard answers. there's the other moments when someone decided to shove shaving foam in his face, which caused a certain amount of commotion. but rupert murdoch just carried

on. he reminded us, he had 200 papers. he's been in the business 57 years. it is a foolish person that actually believes rupert murdoch is down and out. >> is this a case of executive ignorance? or straight up lying. and who will take the fall? coming up next, legal implications of the murdoch hacking scandal including how they may have been coached, prepped before going into the fire this morning. luxurious volume with a light-as-air feel. we took out a heavy synthetic and put in a light touch of beeswax. up with the volume, down with the weight. lashes are 20% lighter than the most expensive mascara. new natureluxe mousse mascara. so free your volume! and...your easy breezy beautiful covergirl. and try natureluxe glossbalm.

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we go to hostin in new york. i want to explain what everyone is seeing on this right hand screen. we made this entire list to show the empire that is news corp. all the different corporations that fall under that umbrella. we'll listen to you. i talked to jeff toobin about this. he called it ignorance is bliss.

how did they handle themselves? >> well, certainly they were coached. there's no question in my that he was coached, he was defiant. he tried to distance himself. but you can't distance yourself from the facts. something terrible happened over and over again. i don't think it's home run by any stretch of the imagination. >> he actually had to wait to read. this is my most humble day of my career, words like humble, mistakes, regret. do you buy the sincerity, sunny hostin? >> you know, he certainly said the right things. again, i think he was probably coached but i don't think you

can change the facts here. i don't know that you can be willfully blind. i don't think you can use this see no evil, hear now evil, speak no evil and have that work in a government investigation. >> what happens in this investigation, look, it's headquartered in manhattan, news corp. it's an american company clearly a global reach you but, you know, u.s. lawmakers, fbi are all calling on different investigations within the u.s. what might that mean for his companies? >> it's not going to fly with government regulators that these alleged horrible activities occurred in a land far, far away. that really doesn't work when it comes to federal investigations. so there are two issues at work. one is that the phones were hacked of the 9/11 victims. that would be an illegal

wiretapping. there's a five-year statute of the limitations for that. perhaps that's not going to be problematic for news corp. what could be problematic are some of the allegations that journalists paid, bribed, basically, paid police officers in britain for information. in my view, that would be a violation of the foreign corrupt practices act. and that would be very problematic. you can't put a corporation in prison, right? but you can find the chief executives spoonsable for it. sometimes in cases like this, brooke, there's a federal monitor put in place to change things. bottom line, we want good corporate citizen, right? and we want corporate governance. we want the folks on top, we want the rupert murdochs of the world to take care of business and make sure that their companies are doing the right thing. i think that would probably be the thrust of the investigation here. maybe a change in leadership perhaps. >> who knows.

i talked to richard quest and he said there's no way rupert murdoch would go down without a fight. that's a good point. thisst a tough story we covered a coup of years ago. inside cleveland's house of horrors, do you remember this? secret interrogations of a man accused of killing with at least a dozen women and living with their bodies on his property. do not miss this right after the break. [ dr. ling ] i need to get the results from the m.r.i. see if the blood work is ready. review ms. cooper's history. and i want to see katie before she goes home. [ male announcer ] with integrated healthcare solutions from dell, every patient file is where dr. ling needs it. now she can spend more time with patients and less time on paperwork. ♪ dell. the power to do more.

>> chilling insight into anthony sowell. he's accused of hiding the bo bodies of at least a dozen women. you might remember this story.

we covered it extensively a couple of years ago. police found these victims bodies in various places. two rotting corpses found on a bed. others stuffed inside a wall in the basement, in the backyard. a skull found in a bucket. so this morning, sowell's lawyers rested their case without kol cacalling a single s or presenting any evidence. prosecutors showed the jury an interrogation tape that police made a day after sowell was arrested back in 2 o0 09. he said he sometimes heard bad voices in his head and he said he dreamed about strangling his victims. listen. >> eyou strangled these girls? >> that's what i dreamed about.

>> stan donaldson has been covering the trial. i know on a monitor, really since this thing started last month, stan, you say this video, piece of which we just saw really gave the jurors a glimpse into the mind of anthony so we ll. why do you say that? and how damaging do you think the video will be? >> the prosecution left out the last bit of evidence they showed to jurors. they started out with very -- very big testimonies, important testimony from from relatives of the victims five men who claimed sowell raped or attacked them. that video is the first time the jurors have been able to hear his voice. so up until this point they haven't heard him.

he showed little emotion in court, but for the most part, this is -- they're actually hearing his voice, they're hearing him talk about his dreams, watching his mannerisms inside the interrogation room. where police detectives tried to get a concession out of hit. >> of police interrogating him, they found six bodies in his home. they were still to find five more. let's watch this. >> do you think i can just -- and everything is so -- it's not clear like that. >> why isn't it? >> i don't know. >> it's interesting. he's sitting there, kind of up and down, agitated. the jury didn't hear from sowell in person. but the interrogation tape shows him, you know, looks like sort of going from one emotion to the other, stan. talk to me about that. tell me what you take from this.

>> there were points he got very frustrated and he didn't want to talk anymore. one was recorded i believe halloween evening of 2009 and the next one was recorded i believe november 2, 2009. in the second video, he appears in the video, he's in a jump suit. he kind of asked for cigarette ps .the detectives tell him this isn't a party. and he immediately shuts down and then he asks to go back to jail after detectives began to question him more about give us evidence, tell us something, tell us something about these women. help us give these families closure. trying to get information about the identity of the victims, the more he would change the subject. he would shut down at times. >> talk about blacking out, right? wouldn't exactly remember what

happened. had these bad voices in his head and as you've been watching this whole thing play out, how has that, how has that sat on members of the jury? just looking at their faces as they leave court each and every day. >> well, i've been watching the trial from a live feed. the judge has only -- he's had some restrictions for the media, so i've been watching from a live feed. i haven't really -- >> got it, no access to jurors. >> yes. the jurors reaction to things. but from what i've hearding some of them have shaken their heads. they've looked at the pictures, the pictures that the prosecution showed were very gruesome. they showed the decomposed bodies of 11 women. and i'm sure that it's had an impact on them. i have seen a little bit of anthony sowell's reaction during

the trial. as i said before, he's been calm pretty much throughout the course of this trial. but there were moments during the trial where he would laugh a little bit. some of this came about as his relatives testify in court. he has a half brother who talked about how their father was a rolling stone. anthony sowell, he chuckled when his brother said that to him. he also has a step grandmother who is elderly. and she saw him in court and said hello, anthony. >> so it sounds like he had a much different appearance, not quite as agitated in court as we saw him in the interrogation tapes. i just want to give everyone your twitter handle. it's @pbsowelltrial. thank you. if you count on restaurant menus to count your callories you may

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if you're one of those people who have eat out a little too much, what you see is not always what you get. i'm talk act the calorie counts given on many restaurant menus. or sometimes you can go to the web. a new study has analyzed restaurant food only to find out the numbers don't always add up. talk to me about the study. i'm afraid to ask what it finds. >> we trust those number, right? >> it's official. . >> right, it's official, it's there in black and white. a salad has 400 calories. you expect it to have 400 calories. but i spent the day with research aerns they said that's often not the case and they were actually really shocked by the numbers they found. let's take a look. >> this is a nutrition researcher and restaurants don't know she's checking up on them. back at her lab she grinds up the food, turns it into a powder and analyzes it to find out how many calories there are.

>> the sample we're going to take to actually put here needs to be a representative sample of the entire dish. she found that one in five restaurant dishes has at least 100 calories more than what the restaurant says it does. that means when you look on the restaurant's website you can't always believe what you read. >> one food had more than 1,000 calories more than it was supposed to. more than 1,000 more. it was just shocking. >> urban and her call league wrote up their findings in this week's "journal of the american medical association." >> it's enormous. it shouldn't happen. >> several restaurants had calorie counts higher, including chipotle where a burrito bowl had 249 more calories. the chicken and gnocchi shup from olive garden had 246 more calories. >> i think restaurants have got a lot to answer for here. >> the national restaurant association points out on average the calorie counts given

by the restaurants are accurate. chipotle and olive garden said their dishes are hand prepared and cooked from scratch and calories may vary. >> you have 100 calories extra a day, that's an extra 10 to 15 pounds during the course of the year. >> 10 to 15 pounds, and unless you had a lab, you would never know why. >> more than 1,000 calories off in one instance. i mean, you would hope to trust those, and i guess you can't. so the issue is the discrepancy was found in salads. >> this is a side salad from outback steak house. guess how many calories she was off by. >> i'm going to guess 800. >> very close, 659. so this salad had 659 more

calories. a outback says the folks at tuftuft s goofed and got an entree instead of side salad but tufts said they didn't. a few more shakes of bacon bits and you've increased the calories by hundreds. >> what do you do as a diner? >> i've got three words for you. on the side. get things on the side. >> we have to be the annoying diner who asks for everything on the side. >> "when harry met sally"? on the side. she was on to something. there's all these bacon bits and blue cheese. it really does look dishs. but if you can sask for the bacn

and blue cheese on the side, you control what's in it. >> really, you're going to make me say i want the almond on the side and the blue cheese on side. >> if you're watching the weight -- not the onions or tomatoes, but blue cheese and bacon bits, yeah. >> it's a good point. we all are so often watching our weight. >> everybody at some point, right? >> thank you very much. and still to come here is this texan ready to throw his hat into the presidential ring? all eyes set firmly on texas governor rick perry as he hints about a run for the white house. we'll go to texas with the governor coming up.

>> time now for your "cnn equals politics" update. jim, you're in austin, texas, following governor rick perry. i'm careful not to see presidential hopeful. at least not yet. what's the governor been up to the last couple of days? >> well, brooke, he has been really going through the motions here of a serious presidential contender in the making here. he is weighing whether or not he can raise the funds to actually

make a serious run for the white house. there are already several candidates in the race. people like rick perry, people like michele bachmann, raising lots of money. he's talking to donors. he's going to be having a meeting in austin with potential presidential donors, having dinner with them. earlier in the day, brooke, he was doing a satellite remote meeting with some pastors in south carolina. south carolina is one of those early voting states. and he said something early in the weekend. he said he is starting to feel like he's being called to run for president. and that got all the political press buzzing about whether or not this is actually going to happen and it's starting to look like it's going to happen, brooke. >> when i hear you say south carolina, dinner with donors, it does make you think, is he really seriously flirting with this idea to make an announcement to jump into the race. any specific news on that front, as far as an announcement? >> well, his aids say that he's

going to have an announcement by the end of the summer. one thing interesting that's happening with rick perry is he's probably not going to jump into the race before august 6. there's a key reason why. he's leading and hosting a prayer where he's call on christians all over the country to come to the stadium and pray with him for what they consider to be a nation in crisis. and it's a very interesting move. there's some critics of this event who say wait a minute, this is blurring the lines, separating church and state. rick perry says no, i'm called by my faith to do what i can to get this country in order and he's defending this event on august 6 down in houston. he's going to go forward with it. he told us yesterday at a press conference, he makes no apologies for it. i think after that event happens, we're going to start to hear something pretty serious about an announcement. >> okay, august 6 with regard to

governor perry. thanks very much. we're going to take you inside the mind of rupert murdoch. a cnn insider tells us more about the man behind this massive media empire. plus his wife jumped to his defense today when that attacker sort of rushes the room. during that hearing you're going to hear her story, next. e-line . so, you've been double crossed by other travel sites and now you want to try the real deal. yes, is it true that name your own price... ...got even easier? affirmative. we'll show you other people's winning hotel bids. so i'll know how much to bid... ...and save up to 60% i'm in i know the lady in leather travels on three wheels. wait, is that code? that's my secret weapon... ...naomi pryce see winning hotel bids now at priceline. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good.

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this woman who literally stood up for her man. let's go to falicia miller. what is her back story? >> she ended up coming to the united states and she ended up graduating from yale with a business degree. wendy started working for rupert murdoch back in the '90s. she was an intern at star tv in hong kong. then they met and clearly, we know resulted. they ended up getting married in 1999. she has two little girl, ages 8 and 10. and she's very protective of her little girls and clearly very protective of her man. this was a top trending topic on quitter. they're now calling her the tiger wife. so clearly she's very protective of the murdoch empire for her own reasons. >> of course it's on twitter.

we' been following media baron rupert murdoch's testimony. so who's the man behind the curtain. the author of "inside rupert's brain" joins me now. let's listen to some of what murdoch said. >> do you accept that ultimately you are responsible for this whole fiasco. >> no. >> you're not responsible? who is responsible. >> the people that i trusted to run it and then maybe the people they trusted. >> paul, you wrote a book on this man, i want your perspective. how do you think he did? >> oh, i don't think he faired really well at all. most media observers will not really believe that rupert murdoch had no knowledge of what was going on, even if it was maybe just, you know, kind of implicit knowledge as opposed to real direct smoking gun knowledge. he hired rebekah brooks, was a

loyal confidant of his. everyone knows that media tabloids is his first love. >> anything about his response, he said this is the most humble day of my career. do you buy it? >> i don't doubt that it is probably the most humble day of his career. he's had plenty of humble days, having sold myspace for a fraction of what they bought it for. it's been a rough patch for him. i do believe that he's sincere about feeling badly for what's happened. but at the same time, i think there probably was this culture at the news international tabloids wr this is probably overlooked and not necessarily encouraged. >> clearly at 80 years of age, still working 10 to 12-hour work days.

he loves his job. he conceded in today's hearing he spends a lot of time with "the wall street journal" than the uk papers. the headline is earth to murdoch, just sell the newspapers. what do you mean by that? >> it's a very small percentage of the company's overall profits. news corp. is more famous before this scandal for owning fox which "american idol" and "house" are on. it owns fox news. the big fox movie studios. really where news corp. makes its money is through tv, cable, entertainment, you know, hollywood movies. and i think a lot of investors would prefer to see news corp. stay on that path and maybe even focus more on the pure media companies and not so much the newspapers because everyone knows the newspaper business has fallen on tough times in the past 5, 10 years. >> okay, your book, "inside rupert's brain." paul, thank you.

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officers got a tip a blushing bride would be back in michigan for her big day and decided to seize upon an opportunity. hinton was only in jail for about half an hour. her husband bonded her out. true love. move over mcgruff. there's a new crime fighting

canine taking a bite out of crime. his name is paco. you've got to see this. when a couple of armed robbers tried to stick up a shot in california, they didn't count on one detail. enter paco, the chihuahua. that courageous pooch parked and nipped at the thieves, chasing them out of the store. no one was hurt. pack co seems to be enjoying the perks of being a hero. i'm a dog lover. love that stuff. "the situation room" coming up with wolf blitzer. you got a dog? >> no, but i grew up with a great dog. her name was dolly. in buffalo, new york. a member of the family. once you have a dog like that, you know, you always appreciate those little things.

i guess seem say this is just theatrics. it's not going to fly. >> it's going to pass the house of representatives. almost certainly not going to pass the senate. even if it did, the president says he would veeto the balance budget amendment. the president is still hoping this new deal with the gang of six maybe could get some legs. almost all of them in the house of representatives, they don't want to see any taxes go up. and a bunch of democrats, especially in the house of creptives who don't want to see any cuts in the entitlement sending, social security, medicare, medicaid. if they have that fail safe position, that back up of the mcconnell-reid man to try to raise the debt ceiling in order to avoid the u.s. going into default, it will probably pass by i don't think it's by any means a done deal. there's still a lot of nervousness out there right now. we're going to be all over that

story and the rupert murdoch hearings. we have a lot coming up at the top of the hour. >> wonderful. wolf blitzer, thank you as always. coming up still here, a man is suing the dmv because he says they wouldn't let him have a customized license plate. it involves sarah palin. my cream is what makes stouffer's fettuccini alfredo so delicious. i think you'll find it's the vegetables. deliciously rich. flavorful! [ female announcer ] together at last. introducing new stouffer's farmers' harvest with sides of lightly sauteed farm-picked vegetables. find more ways to get to the table at letsfixdinner.com.

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sarah palin's name on it. what's the story? >> you have to wonder about this one. everybody has a bone to pick with the dmv, right? a guy in nevada filed a lawsuit saying his rights were violated because the state refused to give him a license plate with the name palin. he asked for palin, go palin, palin 12, palin 16. apparently the guy really likes sarah palin. anyway, the state says no, because the plates he was requesting were political in nature. but an administrative law judge ruled for the guy and the state eventually gave him the plate. there's one thing, though. the "las vegas sun" reporting that some other license plates were found by the state of nevada to be okay. like go green. democrat, al gore, kerry, edwards, dean, hillary, ron paul, but they rejected requests for republican and bush. so what's political apparently

depends on what the meaning of political was. go figure. >> so ultimately they couldn't have sarah palin on the lie snens. >> no, he got it. he got it from the state, the administrative judge said yeah, you can have it. then he went back and filed suit because he thinks he had his rights violated. >> okay. story number two, there's a bit of a sweep stakes going on that only a washington insider would love. do tell. >> the washington examiner newspaper is offering a different kind of vacation promotion. this is a trip to ames, iowa, for the presidential debate there on august 11. now, i'm from the midwest and i'm not so sure everybody gets it. i do. but one of the big selling points is the debate comes at the beginning of the iowa state fair. so you can see the butter sculptures and all different kinds of food on a stick.

>> fried snicker bars? >> i'm sure. well, probably. >> that's what i ate in north carolina. i. >> i really like the livestock and there's chickens. so as an added bonus, it will come two days before the straw poll. coming from ohio, now you know. if somebody offered me an all expenses paid trip to the columbus state fair, i might take them up for it. but you don't see this every day. >> do you have an iphone? i kind of just got one recently. take a look at this. i'm watching us on my iphone. you can see the -- >> that's totally cool. >> i've heard about that app. >> i'm not cool enough to have an ipad, if you just go to cnn and hln, you can watch us. so no excuses, you have to watch joe johns wherever you are 24/7. so all you have to do is just go to